01.10.2018 0

Progressive Governors fail to learn lesson from tax cuts

C/O Constitution.com

By Printus LeBlanc

In case you were living on the moon or under a rock last month, the vast majority of Americans, 80 percent, will see bigger paychecks this year, thanks to the tax cut bill Democrats refused to vote for. This should be a boon for states and localities as people with more money tend to spend it, but that is not how a few high-tax states see the issue. For proof, we look no further than the asinine lawsuit being threatened by a particular high-profile northeast governor.

The complaint most high-tax states have is a cap on the state and local tax (SALT) deductions, set at $10,000. High-tax states such as New York, California, and New Jersey love SALT deductions. The deduction allows the politicians in high-tax states to spend frivolously without accountability because they know low tax states are subsidizing their federal tab.

New York Governor Andrew Cuomo is the one making most of the noise so far. He is not too high on the idea of letting people keep more of the money they earn. On Wednesday, Jan. 3, he announced his intention to file a lawsuit challenging the constitutionality of the tax law based on the 10th and 14th Amendments. Several legal scholars have already laughed this off.

The governor also announced he would launch a lobbying campaign to repeal the tax cuts. So, the governor is going to spend millions in lobbying efforts to convince the federal government to take more money from taxpayers?

Cuomo, like California, Connecticut, and Illinois, is ignoring the obvious benefits of the tax cut. Since the announcement of the tax cut, over 100 companies have given hundreds of millions of dollars in bonuses and raises to at least 500,000 people across the nation. That is going to equate to millions in tax revenue at the state and local level.

Under the new law, Cuomo estimates New York residents could pay an additional $14 billion in federal taxes. But what progressive governor didn’t say was how he was going to cut spending by $14 billion at the state level, because he is not going to do that. By cutting spending, he could give New York state taxpayers another present.

Perhaps the most hilarious quote from the New York governor is, “It is complicated, it is difficult, but it is clear that we must protect New York taxpayers from this assault.” The federal government is giving the people of New York more of their federal tax dollars back, and the governor thinks that is an assault.

What is an assault on the state is the governor’s regulatory environment, state tax policy, and reckless spending. The policies are so horrendous the state and states with similar policies are hemorrhaging people and businesses. Recent census projections show just how the policies are impacting the states run by progressives. New York, Illinois, and California look to lose seats in the 2020 census, lessening their power in Congress, while giving seats to Texas, Florida, and Montana.

Connecticut Governor Dan Malloy is following the path of insanity blazed by New York. The affluent in the state are leaving in droves because of high taxes, regulations, and the cost of doing business. From 2015 to 2016 citizens fleeing Connecticut took over $6 billion in adjusted gross income, according to the IRS data. I bet the state could have used that money to fill the budget gap.

The fiscal situation is so bad in the state, the Mercatus Center at George Mason University, ranked the state dead last for fiscal health in 2016, worse than Illinois and California. Most of the residents fleeing headed to a state with low taxes, low regulations, and the fiscally healthiest state in 2017, Florida. Did the governor learn a lesson from his 2011 and 2015 tax hikes? No, he is trying to do the same thing again, more taxes and more spending.

Americans for Limited Government President Rick Manning laughed at the idea of filing a lawsuit to stop tax cuts stating, “By filling an absurd lawsuit Governor Cuomo is engaging in political malpractice, complaining the federal tax system would discontinue subsidizing the high taxes his citizens pay and wasting even more money using government resources filing a frivolous lawsuit.”

The math does not add up for the progressive states. New York’s population only added 750,000 people from 2000-2016, 3.9 percent growth. Connecticut fared little better adding 164,000 for 4.8 percent growth. But when you look at spending over the same time, New York state increased its spending by 94 percent. Connecticut outdid their southern neighbor by more than doubling their state spending during a time of weak population growth. How can you justify spending outpacing population growth? No wonder they keep raising taxes.

While this was happening states like Texas and Florida were adding 6 million and 4 million respectively. Both states also maintain some of the lowest per capita spending with Texas spending $4,600 and Florida spending $3,800.

The tax cut did more than give taxpayers the money they earned; it showed the true intentions of most progressive governors in the country. Progressive governors want to take your money and control your life. The governors need to take notice of states like Texas and Florida; fewer taxes and fewer regulations equal more jobs more tax revenue and fewer people dependent on the state government for survival. It is simple math, but apparently, they don’t teach it in northeastern progressive universities.

Printus LeBlanc is a contributing editor at Americans for Limited Government

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